Stripe Inc and Twitter are working on a pilot program, which will allow a select group of creators on the micro-blogging platform to receive payments in crypto via Stripe Connect. For now, the service will be restricted to payments in USD Coin (USDC), which is a stablecoin.
Founded in 2010, Stripe Inc. is an Irish-American online payments company touted as one of the world’s most valuable startups. After shutting down its support for Bitcoin payments in 2018, the company has decided to re-enter the crypto ecosystem through its global payment platform, Stripe Connect.
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According to Stripe Inc’s blog post, Twitter will be their first partner for this initiative. The two companies are working on a pilot program that will allow a select group of creators on the micro-blogging platform to receive payments in crypto through Stripe Connect. However, as of now, the service will be restricted to payments in USD Coin (USDC), a stablecoin pegged 1:1 with the U.S. Dollar.
“Today, we’re introducing crypto payouts for Connect. With crypto payouts, a select group of creators on Twitter—our first partner—will be able to use cryptocurrency-based rails to receive their earnings from Twitter,” Stripe Inc said in its blog post.
What is Stripe Connect?
In a nutshell, Stripe Connect is a payments solution for platforms and marketplaces. It allows businesses to pay people in more than 70 countries in their local fiat currency, and now, cryptocurrencies like the USD Coin (USDC).
As of now, Stripe Connect will only support crypto payouts to wallets compatible with the Polygon (MATIC) network. Polygon is a layer two blockchain designed to make Ethereum faster and easy to use. Polygon offers blisteringly fast transaction speeds (up to 65K TPS) and nominal transaction fees, which could be why it was chosen for the Stripe Connect crypto pilot program.
Another reason behind the partnership could be their vested environmental interests. Both companies are looking to push green initiatives. Polygon is looking to go carbon-neutral by the end of the year, and Stripe has just set up a new fund to support carbon dioxide removal technologies.
Twitter and Stripe Connect
Twitter has several monetization products such as Ticketed Spaces, Super Follows and Tips. According to Stripe Inc’s blog post, two of these products, Tickets Spaces and Super Follows, already use Stripe Connect to pay creators.
With Ticketed Spaces, creators can host talks and conversations that users can only access if they pay a certain fee. Similarly, Super Follows allows content creators on Twitter to create an income stream through subscriptions.
They make exclusive content for their subscribers, and in exchange, the subscribers pay a small fee.
Now, Stripe Connect will allow content creators to receive these fees in crypto.
“Stripe customers can now instantly pay funds to their sellers, freelancers, content creators, and service providers using cryptocurrency. In addition, using Stripe, companies like Twitter can offer creators the choice to receive payments in crypto. Initially, the payouts will be available using USD Coin (USDC), a stable coin pegged to the US dollar,” Stripe Inc said in its press release.
For now, Stripe Connect is limited to crypto payments in USDC and only supports wallets compatible with the Polygon network. However, in the future, Stripe Connect plans to offer payments in several more cryptocurrencies and provide compatibility across various blockchains. The company also plans to expand its payment service to 120+ countries by the end of the year – almost double the 70 countries it currently services.